Analysts remain bullish on gold. UBS for example believes gold could run even further and remain high “for longer than expected” on global uncertainty, as noted by CNBC. The analyst added the firm raised its forecast for gold next year from $1,850 to $2,100. “An environment of negative real interest rates and global uncertainties, such as the upcoming U.S. presidential election, are among the reasons that have pushed investors to build up their gold holdings.”
In addition, former Goldman Sachs’ Chairman and CEO Lloyd Blankfein said, “It has been so long since these metals have played a role in financial markets as a store of value,” as quoted by Kitco. In addition, earlier this year, the firm said we’ll see higher gold prices on low real interest rates and currency debasement concerns. Even Buffett’s Berkshire Hathaway has just started to jump into gold miners, like Barrick Gold. “In the past, Buffett, the billionaire chairman of Berkshire, cautioned against investing in the metal because it’s not productive like a farm or a company. Now, gold miners are benefiting from surging bullion prices that are boosting profit margins as costs of production have steadied, making them increasingly attractive investments,” says Bloomberg. That’s creating big opportunity for gold companies such as Eclipse Gold Mining Corporation (TSXV:EGLD)(OTC:EGLPF), AngloGold Ashanti Limited (NYSE:AU), Barrick Gold Corp. (NYSE:GOLD)(TSX:ABX), Franco Nevada Corporation (NYSE:FNV), and Newmont Corporation (NYSE:NEM).
Eclipse Gold Mining Corporation (TSXV:EGLD)(OTC:EGLPF) BREAKING NEWS: Eclipse Gold Mining Corporation is pleased to announce the mobilization of a second drill rig at its Hercules Gold Project in Nevada’s Walker Lane trend. This second reverse circulation drill rig will accelerate the Company’s Phase II program, which is planned to comprise 18 holes totaling approximately 6,750 meters. To date, the Company has completed 1,517 metres over five holes in Phase II drilling. The drill program was designed to test for possible extensions of known mineralization and test geophysical targets. For further details of the Phase II drill program, please see the Company’s August 18, 2020 news release.
Other related developments from around the markets include:
AngloGold Ashanti Limited (NYSE:AU) in conjunction with its joint venture partner IGO Ltd, is pleased to announce that commercial production has been declared at the Boston Shaker underground mine at Tropicana in Western Australia. Tropicana, located 330 kilometres east-northeast of Kalgoorlie, is managed by AngloGold Ashanti Australia (AGAA) with a 70% interest. IGO holds a 30% interest. Development of the Boston Shaker mine was approved in March 2019, and the mine transitioned into commercial production this month on schedule, below the A$105.7 million (US$77 million) budget and importantly, with no recordable safety incidents. Boston Shaker will deliver approximately 1.1 million tonnes of ore per annum at an estimated grade of 3.5 grams/tonne, contributing approximately 100,000 ounces per annum to gold production over a seven-year mine life. “Underground mining at Boston Shaker will leverage further value from this high performing operation, achieving payback in just over three years with upside potential as the deposit remains open at depth,” AngloGold Ashanti SVP Australia Michael Erickson said.
Barrick Gold Corp. (NYSE:GOLD)(TSX:ABX) said it accepted the Antofagasta Environmental Court’s decision to uphold the closure order and sanctions Chile’s environmental regulator imposed on Compañía Minera Nevada, the Barrick subsidiary that holds the Chilean portion (Pascua) of the Pascua-Lama project. Barrick said the ruling drew a line under a legal process that started in 2013 and the company would not appeal it. Construction was suspended that year and Pascua would now be transitioned from care and maintenance to closure in accordance with the Environmental Court’s decision. Following the ruling, Marcelo Álvarez, Barrick’s executive director for Chile and Argentina, said Pascua-Lama remained an important project and work is already under way to re-evaluate its potential. This involves a comprehensive internal review of its technical, economic and social aspects as well as different approaches to permitting and development should the ongoing studies deliver a project that meets Barrick’s investment filters. He confirmed that any new project development would comply with current legislation in both Chile and Argentina.
Franco Nevada Corporation (NYSE:FNV) diversified portfolio performed well despite the impact of COVID-19 during the quarter. “We recognize the efforts of our operators and their related communities during this difficult period”, stated Paul Brink, CEO. “Of our original 56 cash generating mining assets, 15 experienced some form of temporary curtailment in Q2. All except Golden Highway have since resumed operations. The return to normal operations and higher gold prices makes us optimistic about the second half. In addition, we see the potential for longer-term organic growth from our over 240 exploration and development royalties due to increased capital available to the gold sector. Our energy assets should benefit now that oil & gas prices have stabilized since the lows experienced in Q2. Franco-Nevada is debt free, has a growing cash balance and expects good growth in our gold equivalent ounces over the next few years.”
Newmont Corporation (NYSE:NEM) announced that Bernard Wessels has been appointed General Manager of the Peñasquito mine, replacing Jim Cooper. Jim Cooper’s employment with Newmont has been terminated with immediate effect for violations of Newmont’s Code of Conduct while working for the Company in Australia. Bernard Wessels brings a long and successful track record of operational delivery to Peñasquito having managed Newmont’s Ahafo mine in Ghana since 2017. During his time at Ahafo, Bernard delivered the Ahafo Mill Expansion project on budget and is advancing the improved mining method at Subika Underground which will increase production, capture higher efficiencies and lower costs. Bernard delivered improved safety performance, consistently strong operational performance and significantly improved productivities across the site. Prior to joining Newmont, Bernard managed complex gold and platinum mines across South Africa, balancing difficult technical and community challenges at each operation.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Eclipse Gold Mining Corporation has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Eclipse Gold Mining Corporation. Please click here for full disclaimer.
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